The City of Bloomington will need $10 million 3 years from now to improve the energy efficiency profile of its communities. Assume the city has a current surplus of $12 million that it can invest in a combination of stocks and bonds. How much will it need to invest today in order to have the desired amount in 3 years? Assume the average annual return on investment is 7%. $10 million $8.16 million $12.25 million
The City of Bloomington will need $10 million 3 years from now to improve the energy efficiency profile of its communities. Assume the city has a current surplus of $12 million that it can invest in a combination of stocks and bonds. How much will it need to invest today in order to have the desired amount in 3 years? Assume the average annual return on investment is 7%. $10 million $8.16 million $12.25 million
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Transcribed Image Text:The City of Bloomington will need $10 million 3 years from now to improve the energy efficiency
profile of its communities. Assume the city has a current surplus of $12 million that it can invest in a
combination of stocks and bonds. How much will it need to invest today in order to have the desired
amount in 3 years? Assume the average annual return on investment is 7%.
$10 million.
$8.16 million
O $12.25 million
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